Tesla's Stock Keeps Rising After Goldman Sachs Gives Shares $864 Price Target

Tesla Inc TSLA shares are on the rise again after Goldman Sachs resumed coverage of the electric automaker on Tuesday evening.

The Tesla Thesis

Goldman Sachs analyst Mark Delaney resumed coverage of Tesla's stock with a Buy rating and an $864 price target.

"We are positive on Tesla because we believe that the company has a significant product lead in EVs, which is a market where we expect long-term secular growth," Delaney wrote in a note.

Delaney also said that compared to other auto and tech companies, Tesla is attractively valued given its revenue growth.

TSLA Price Action

The stock is off to a hot start this week after closing Monday's session higher by 13%.

Tesla's production in the United States has been hampered due to the coronavirus pandemic, but the company has resumed work at its China factory. Reuters reported over the weekend that Tesla started sales of another two Model 3 sedan made at the Shanghai site in China.

Tesla's stock closed Tuesday's regular session at $709.89 per share, up 9%. The stock added another 5.16% in the after-hours session following the news of Goldman's new rating, trading around $746 per share at the time of publication.

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